The Economist Intelligence Unit expects that the global economy will contract by 2.5% in 2020 as a result of the coronavirus pandemic. This represents a much deeper global recession than that experienced during the global financial crisis.

The negative effect on growth will come via both demand and supply channels. Quarantine measures, illness, and negative consumer and business sentiment will suppress demand, with the closure of some factories and disruption to supply chains creating supply bottlenecks.

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